OSFI released ORM Guideline E-21 which outlines its expectations for the sound management of operational risk
In its seventh issue of Insurance Sound Bytes, KPMG provides an overview of the ORM Guideline E-21 (“E-21”) that were released in June 2016 by the OSFI. These guidelines outline the “expectations for the sound management of operational risk”. This is applicable to federally regulated financial institutions (“FRFIs”), which includes all insurers (OSFI, 2017). For Canadian insurers (and other financial institutions), E-21 represents a principles-based approach to identify, assess, and manage operational risk (“Op Risk”). Insurers need to comply by June 2017.